BEER GAME Essay Example | Topics and Well Written Essays - 750 words

BEER GAME - Essay ExampleFurthermore, during cold weather the lease declines drastically thereby increasing the cost of manufacturing the increase. Businesses exist in self-sustaining cycles. When the consider for a product changes the prices of opposite complimentary products approximately of which are useful in the manufacturing process changes as well thereby intensify the challenges facing a course, the supply of bottled water for example uses much(prenominal) products and services as plastic bottles, mark and transportation among others. The nature of the product makes it susceptible to climatic conditions since they influence the demand thus compounding some(prenominal) of the supply challenges (SILK, 2006). The transportation cost for the bottled water is likely to increase during warm water as the demand for the product increases regionally. This implies that demand increases even to the transporters a feature of the line of reasoning that is likely to increase th e cost of conducting business thereby increasing the price of the product. Demand for bottled water increases during special occasions such as eat up year parties, graduations and sports among others. The demand for the product stays either constant or declines in the absence of such social gathering. The impromptu arrangement of some of the social functions makes it dispute the provider to increase the quantity of the product during make and to organize for their transportation to the university in time. Additionally, most of such occasions last a sidereal day and attracts undetermined quantity of people. Such occasions as graduations and sports attract many people while some occasions such as seminars and class parties may not attract as much people. The half-hourly nature of the demand coupled with the unreliable size of the demand makes both manufacturing and transportation to the university more challenging (PRASCH, 2008). It is more challenging to change the quantity of t he product for a day and organizing for their transportation to the market. The sudden memorial tablet of some of the events makes it more difficult for the business to set up the necessary infrastructure to manufacture an increase volume and transport them to the market in time. The problem increases since the company must find market for the profuse market should it increase its issue yet the demand fails to meet the quantity of the supply. Such excessive production results in losses for the business (FISHER, 2007). Graduation gowns Graduation gowns on the other hand have a more determined market. The products are essential to the students at the end of every academic year as the students adorn them in their graduation ceremonies. This implies that the supplier has a specified amount of time of both manufacture and supply to the university, additionally the supplier operates closely with the institution. The supplier of graduation gowns therefore has a determined market. Howeve r, the business just as any other faces numerous challenges most of which arise from the nature of the demand (BURROW & BOSILJEVAC, 2009). The products are for example relevant only during graduations. This implies that the supplier remains out of business during the rest of the academic days. The demand for the product stays minimal during the rest of the days but rises abruptly during the graduation day. While the supplier